Singapore Airlines to increase fuel surcharges

Singapore Airlines announced (21-Jan-2011) it will increase its fuel surcharge for fares issued on or after 27-Jan-2011, as a result of the recent escalation in the price of jet fuel. The price of jet fuel is now above USD110 per barrel. They represent an increase of between USD3 and USD27 per sector, depending on the distance and class of travel. The new levels will apply to Singapore Airlines and SilkAir services. [more]

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The Singapore Airlines (SIA) Group is continuing to pursue rapid expansion in China with the launch of services to Dalian by Scoot and to Fuzhou by SilkAir. The addition of Dalian and Fuzhou will extend the group’s Chinese network to 25 destinations in Nov-2016.

Scoot launched Shenyang as a one-stop service via Qingdao in 2013; it is now upgrading the route to nonstop. Shenyang will give Singapore Changi 25 nonstop destinations in China – more than any other airport in Southeast Asia. Fuzhou is already served from Singapore, while Dalian will initially be served as a one-stop product via Qingdao.

Maintaining a leading network in China is an important component of the current SIA Group strategy. It is also essential, since SIA is unable to codeshare on domestic services within China due to regulatory restrictions.

Singapore Airlines (SIA) will launch services from Jakarta to Sydney in Nov-2016, resulting in new competition for rivals Garuda Indonesia and Australia’s Qantas Airways. SIA’s entrance on the Jakarta-Sydney route is a strategic move and highlights its desire to pursue new areas of growth.

The Indonesia-Australia market is a logical market for SIA as it seeks to diversify its business. Indonesia and Australia are already SIA’s two largest international markets and Garuda and Qantas are already among its biggest competitors.

Competition within Asia Pacific, including the Southeast Asia-Australia market, has been intensifying. In the current highly competitive and challenging environment airlines are constantly jockeying and exploring new options to improve their position.